S&P raises Egypt’s soverign credit rating to ‘B’ from ‘B-”, lowers outlook to stable

Mohamed Samir
1 Min Read
Local banks in the North Africa region are still “slowly familiarizing” themselves with Islamic finance and sukuk markets as a creditable financing alternative, according to an report by international ratings agency Standard and Poor’s (S&P) published 18 February. (AFP Photo)

S&P Global Ratings on Friday raised Egypt’s sovereign credit rating to B from B-, backed the improvements in business fundamentals, while the economic outlook was revised to stable from positive.

According to the report published by S&P, the revised credit rating reflects the competitive exchange rate, increase in natural gas production, and the witnessed increase in exports that led to improvements in Egypt’s current account deficit.

Moreover, the credit rating agency says that inflation is on a declining path, due to the effective monetary policy adopted.

Consequently, S&P believe that the ongoing economic and fiscal reforms will support rising business confidence and sustain capital inflows.

The report concludes that the re-election of president Abdel Fattah Al-Sisi in March will increase political stability, and in-turn will insure the continuity of the economic reform programme.

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Mohamed Samir Khedr is an economic and political journalist, analyst, and editor specializing in geopolitical conflicts in the Middle East, Africa, and the Eastern Mediterranean. For the past decade, he has covered Egypt's and the MENA region's financial, business, and geopolitical updates. Currently, he is the Executive Editor of the Daily News Egypt, where he leads a team of journalists in producing high-quality, in-depth reporting and analysis on the region's most pressing issues. His work has been featured in leading international publications. Samir is a highly respected expert on the Middle East and Africa, and his insights are regularly sought by policymakers, academics, and business leaders. He is a passionate advocate for independent journalism and a strong believer in the power of storytelling to inform and inspire. Twitter: https://twitter.com/Moh_S_Khedr LinkedIn: https://www.linkedin.com/in/mohamed-samir-khedr/
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